Microsoft replaces scratched discs. My friend got 2 games replaced for free. I think they may have changed it to charge like $10 for a replacement, but that's more than fair considering people could call and lie to them to get a cheap game disc.
And yes this is very old news. If the BBC is just now covering it (again) it is likely a followup to show the newer models are improved and to gain some more viewers over the whole controversy.







